Tamilnadu Telecommunications - Limited Review For The Quarter Ended Jun 30, 2007

Tamilnadu Telecommunications Ltd has informed that in the limited review report of the Company for the quarter ended June 30, 2007, the Auditors of the Company have made the following observations:

1. Preparation of accounts on going concern basis despite substantial losses, which exceeds the Company net worth and consequent reference to BIFR, the impact of which on the financial results of the Company is not ascertainable.

2. No provision is made in the accounts for certain long outstanding debtors the recoverability of which is dependent on the decision of the court the case filed by the said debtor against the Arbitration Award.

3. No provision for interest made Rs 27 lakes in respect of bank account which has been declared as NPA by the bank.